How to handle PM declining your decisions, and in favor of tenant over owner?

I bought this property a little less than a year ago. The tenants are 10 year living there, and the rent was significantly below. The tenants wanted to stay MtM so they can find a new place, I allowed it and then they came back to sign. They just renewed their lease, and it was a $150 increase to be closer to market rate. Still below market by $200~, but only because it’s not fully renovated. I paired the slight increase with LVP renovation.

The PM has been overly emotional about the tenants when talking to me, which is actually emotionally draining. The tenants are low headache, pay on time etc. I don’t think I’ve handled the tenant situation negatively, I’ve slowly increased rent, still below market, been patient with their requests on MtM so they can find a new place, paired increases with renovations, etc this place has been break even at best.

The PM sends me the signed lease for $150 below what we agreed on, I flagged this and also that there’s been no sign off on updating the deposit (deposit is the same cost it was 10 years ago). So I also flagged I need this updated.

He (the PM) gets back to me by saying they updated the rent to the right amount through an amendment but made the decision to not update the security deposit since they’re great tenants — I understand the strategy if the fear is they may leave, but I feel it is inconsiderate to the owner as I’ve asked explicitly. I would have been more fine with this had they consulted me on the decision first. Am I wrong to feel this way?